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Learning, Sharing, and Teaching => Investor Alley => Topic started by: NewDay1 on August 25, 2019, 03:04:28 PM

Title: What is an Investment Policy Statement?
Post by: NewDay1 on August 25, 2019, 03:04:28 PM
As I'm learning, I read people referring to their IPS or Investment(or) Policy Statement.  Would someone be willing to share an example of theirs (or a generic form)? 

I'm not exactly sure what you are all referring to...thank you for any feedback.
Title: Re: What is an Investment Policy Statement?
Post by: EvenSteven on August 25, 2019, 03:37:58 PM
The Bogleheads wiki has a good rundown.

https://www.bogleheads.org/wiki/Investment_policy_statement
Title: Re: What is an Investment Policy Statement?
Post by: Frankies Girl on August 25, 2019, 03:40:59 PM
https://www.bogleheads.org/wiki/Investment_policy_statement
^explanation and includes a few real examples.


You can have an IPS as simple as a few lines or multi page cover-all-possibles one.


My IPS is pretty basic. I state what I have, what my needs are, how often I rebalance/at what levels I need to do so, and in case of X, I do Z for a few obvious scenarios like market drops or sudden influx of major $$.

IPS is your blueprint for what you have and why, and what your plans are. You can rewrite (and probably should) to adjust for significant life changes like marriage/kids/divorce/windfalls. In times of uncertainty, having a map to refer to helps you stick to the path you intended instead of panicking and running screaming off into the wilderness.
Title: Re: What is an Investment Policy Statement?
Post by: Buffaloski Boris on August 25, 2019, 05:31:57 PM
Id never heard of this. What a great idea! Ill put one together when I can.
Title: Re: What is an Investment Policy Statement?
Post by: ecchastang on August 25, 2019, 07:47:53 PM
It helps you stick to the plan in the ups, downs and sideways.